CTRP to transcend the competition
Ctrip International has a leg up on looming competitors
Written by Douglas Estadt
Not long ago, Baidu (BIDU), China’s No. 1 search engine, was facing criticism because of media claims that it would be beaten by bigger and better competitors when China Mobile said they were entering the search market.
As an established brand name
and favorite of Chinese internet users, BIDU continues to grow at
incredible rates quarter-over-quarter and the stock price has risen
substantially. Investors who took the empty words of people who write about but
don't successfully trade stocks sold their BIDU shares and missed 45%
upside in BIDU in a few months.
In a remarkably similar situation, shares of Ctrip.com (CTRP), China’s No. 1 travel website, were getting hit by an article warning of big competition. Here are just a few reasons why we believe CTRP will continue to succeed in same vein as did BIDU:
- China has the greatest number of internet users in the world, and its travel market continues to grow - CTRP has its niche here.
- The competition hasn't hurt Ctrip's results. The stock has risen 52% since early July and this is a gigantic week for travel in China for National Day holidays and records are being set for the amount of travel being done.
- There’s a poor track record for big companies dabbling in businesses that isn't their specialty/primary focus.
- Ctrip's advantage is being well known as the online travel website in China. Users have developed a relationship with this brand and their locations in Airports are ubiquitous and heavily used.
I made a TON of money in BIDU since that article (own shares of their common stock since $71.53 and have profited incredibly trading their options as well). CTRP, too, will stand to profit from China’s booming economy and their success and leadership won't easily be taken away any more than Baidu's. To learn more, watch the following video.
Visit us also at Wall Street Media.
We feature exclusive insights from leading investors I know and trust.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.